Rental property in Raleigh, NC
2026 Market Data & Investment Analysis
Gross Yield
5.4%
Annual rent / price
Median Home Price
$390,000
As of 2026-Q1
Median Monthly Rent
$1,750
Per month
Population
467,665
+2.1% / yr (5y avg)
Estimates based on median market data. Actual returns depend on your specific property. Source: Zillow Research / U.S. Census Bureau, 2026-Q1.
Calculate your rental yield in Raleigh
Pre-filled with Raleigh's median values. Adjust to match your specific property.
Property Details
Total acquisition cost before taxes
HOA, insurance, property management
% of time the property is empty
% of purchase price (e.g. 2% = 2)
Rule of thumb: 1% of purchase price/yr
Results
Gross Rental Yield
5.38%
Net Rental Yield
3.50%
Cap Rate
3.50%
Monthly Cash Flow
$1,137.50
Annual Cash Flow
$13,650.00
Raleigh rental market at a glance
Median Home Price — 5-Year Trend
Median Monthly Rent — 5-Year Trend
Raleigh presents a compelling rental investment opportunity within the Research Triangle corridor, driven by sustained corporate migration and tech sector expansion. The 5.4% gross rental yield significantly outperforms national averages and reflects strong rental demand fundamentals—the 4.8% vacancy rate indicates a balanced but tenant-favorable market with healthy absorption capacity. Apple's regional operations expansion, along with growing presence from IBM, Oracle, and Capital One, continues to attract skilled workers and young professionals seeking affordable alternatives to coastal tech hubs, creating consistent rental demand across the 25-40 demographic.
Demand drivers extend beyond employment, anchored by North Carolina State University's 35,000+ student population and nearby Duke University within reasonable commuting distance. The city's business-friendly regulatory environment and tax structure have attracted corporate headquarters relocations, supporting both white-collar rental demand and multi-family development activity. The $390,000 median home price, while appreciating modestly, remains accessible compared to comparable tier-1 markets, suggesting room for both value-add acquisitions and long-term price appreciation as the market matures.
The 2.1% annual population growth, while moderate, signals sustainable demand rather than speculative bubble dynamics. Future development around I-440, I-540, and downtown revitalization projects will likely enhance accessibility and rental capture potential in secondary submarkets. However, investors should monitor whether rapid new construction in the multifamily sector—particularly build-to-rent developments—eventually pressures yields and rental rate growth by 2025-2026.
What type of investment market is Raleigh?
Raleigh features strong population growth that may drive property values higher over time. Current rental yields are modest, so returns are more dependent on price appreciation than immediate rental income.
✓ Strengths
- •Research Triangle economic corridor with diversified employer base (tech, pharma, finance) reduces sector concentration risk compared to single-industry markets
- •5.4% gross yield substantially exceeds Sunbelt average of 4.2%, providing strong cash flow returns even in moderate appreciation scenarios
- •Sub-5% vacancy rate indicates genuine tenant demand rather than oversupply, supporting rent growth and lease renewal pricing power
- •University-anchored rental demand through NCSU and proximity to Duke creates stable, predictable tenant base with institutional enrollment cycles
! Risks
- •Aggressive multifamily development pipeline (15,000+ units under construction/planned) threatens yield compression and rental rate deceleration in 2024-2025
- •Modest 2.1% population growth lags peer cities like Austin and Nashville, suggesting slower demand acceleration and potential overbuilding relative to absorption
- •Tech sector sensitivity to interest rates and recession cycles—corporate hiring freezes at Apple, IBM, or Oracle would cascade into elevated vacancy and concession pressure
- •Geographic constraint: landlocked growth within I-440 ring creates supply constraints in desirable neighborhoods and potential rent bifurcation between premium/secondary units
Key Metrics
How does Raleigh compare to nearby cities?
Raleigh vs Durham: 0.1 percentage point difference in gross yield.
| City | Median Price | Median Rent | Gross Yield | Pop. Growth |
|---|---|---|---|---|
| Durham, NC | $370,000 | $1,700 | 5.5% | +1.9% |
| Charlotte, NC | $370,000 | $1,700 | 5.5% | +1.4% |
| Virginia Beach, VA | $320,000 | $1,600 | 6% | +0.2% |
| Richmond, VA | $310,000 | $1,550 | 6% | +0.7% |
| Atlanta, GA | $350,000 | $1,750 | 6% | +1.6% |
Investor Takeaway
Raleigh suits value-focused income investors seeking steady 5%+ yields in growing secondary markets, particularly those targeting Class B multifamily or single-family rental portfolios oriented toward professionals aged 25-45. A disciplined buy-and-hold strategy with 7-10 year hold periods works best here—capture current yields while benefiting from modest long-term appreciation and rent growth, avoiding speculative flipping. Critical watchpoint: monitor YoY multifamily absorption rates and new supply completions through 2025; if delivered units exceed leasing velocity, yields will compress materially, making current pricing less attractive relative to future entry points.
Common questions about investing in Raleigh
Is rental investing profitable in Raleigh?▾
What is the average rental yield in Raleigh?▾
How does Raleigh compare to Durham for investors?▾
Explore more cities in United States
Compare yield, price, and population growth across all cities
Ready to Analyse a Specific Property in Raleigh?
Use our free rental yield calculator to model any property — not just the median.
Compare with nearby cities: